York County School Division balances FY26 budget after enrollment revision; staff bonuses to be paid May 16

York County School Division officials told the School Board on May 12 that revisions to enrollment estimates and final state allocations have produced a balanced fiscal year 2026 budget, and that the division will distribute previously approved staff bonuses this week.

Chief Financial Officer Bowen summarized the division’s reconciliation of FY25 and FY26 funding and expenditures. He said the governor approved the final state budget on May 2 and that the board had approved bonuses on May 9. “I’m happy to report that the bonuses will be paid this Friday, May 16,” Bowen said.

The budget narrative centered on changes to the division’s average daily membership (ADM) used to calculate state funding. Bowen said the FY25 original budget used an ADM of 12,009.66; internal projections at one point trended as high as roughly 13,061, and the governor’s proposed calculations initially showed still higher figures. The division’s final March 31 ADM used for state funding came in at 12,978, Bowen said, prompting staff to revise FY26 ADM downward. He described the FY26 proposal as a conservative estimate that reduces projected new teacher positions if enrollment falls below the projection.

Why it matters: ADM drives state funding. Bowen said the net effect of the adopted state aid and the division’s ADM revisions resulted in a roughly $1.44 million increase in available state funding compared with the board-approved March proposal, but that the ADM drop cost the division about $1.56 million. To balance the budget, staff reduced planned raises slightly — from a proposed 4% to 3.5% — and cut planned new teacher FTEs tied to enrollment growth, eliminating nine new teacher positions and retaining three in the FY26 draft.

Bowen also reported increases in other revenue lines: an increase in Children’s Services Act (CSA) reimbursements (staff conservatively estimated $300,000 of an observed $450,000 trend), a $25,000 Medicaid reimbursement increase, and an increase in county support from $500,000 to $1,000,000 after county budget adoption. Taken together, Bowen said, reductions in expenditures and the revenue increases reconcile the earlier budget gap and permit a balanced FY26 budget. He told the board he will bring a formal resolution for adoption of the FY25 and FY26 adjustments at the next meeting.

Board members asked about causes for the ADM decline and whether specific drivers were confirmed. Bowen said the division is investigating causes and is working to tighten internal tracking (for example, better capturing deductions for students attending regional programs such as New Horizons). He said early fall enrollment had been high but had fallen month-to-month and noted military moves as a possible factor, though he said that had not been confirmed. He warned that broader economic changes — including possible sales-tax declines — could require later adjustments.

The presentation also highlighted management details: Bowen recognized finance staff Allison Brandon (budget supervisor), Beth Hall (budget analyst) and Heather McElligot (payroll manager) for rapid work on the revisions.

Ending: Bowen said staff now consider the FY26 budget balanced under the current assumptions and will present the formal resolution for the board’s consideration at the next meeting. He also recommended continued monitoring of enrollment and economic indicators that affect revenues.